1. Field of the Invention
The present invention relates to identity theft protection systems. More particularly, the present invention relates to a system and method for identity verification and management.
2. Background Information
Identity theft is considered one of the fastest growing crimes in the United States. For example, between 2002 and 2003, the number of reported cases of identity theft grew 80 percent. In 2002 alone, nearly ten million cases of identify theft were reported. Nearly one in 8 United States adults have fallen victim to identity theft in the last five years. On average, identify theft will cost a victim approximately $1,000 in expenses to rectify the damage caused to their financial accounts and reputations. The yearly costs of identity theft are enormous, costing business approximately $48 billion and individuals approximately $5 billion.
Identity thieves can operate in a number of ways. With the spread of the Internet and the increases in computer processing technology, access to personal and financial information of individuals (through both legal and illegal means) has become far easier and more prevalent. Other more conventional techniques include stealing credit card numbers and using those numbers to create new credit cards under false names. Job applications, personnel records and employment data that should be confidential can instead be stolen by thieves who use the information to steal workers' identities. A person's social security number can be stolen and used by the criminal to apply for credit. Once the identification is stolen and credit is issued, the identity thief can use the credit in an unrestricted manner. Typically, the victim of the identity theft may not learn of the theft until many weeks or months after the crime has occurred, for example, not until the next credit card statement is received.
Much of identity theft occurs because an individual cannot control how and who uses their identity and, consequently, their credit. The problem of identity theft also applies to companies and other like entities whose identities are also at risk, such as financial institutions, retail stores and the like. For example, a criminal company can pretend to represent a reputable company and use the reputable company's stolen identity for financial gain. For example, a fraudulent mortgage company could pretend to represent a reputable and established Bank to steal money from unsuspecting individuals, to the financial and reputational detriment of both the individuals and the Bank.